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Sigma Withdraws From Boots Sale Talks

Sigma’s decision leaves the Weston family as the only reported private suitor and raises the near-term chance of a London IPO for owner Sycamore.

Overview

  • Sigma Healthcare confirmed on Monday that it had “elected to withdraw its interest and cease discussions immediately,” saying a Boots acquisition would not meet its strategic or capital-investment objectives.
  • The withdrawal leaves Wittington Investments, the Weston family vehicle, as the only reported private bidder still in talks over a deal widely pegged at about £7.5bn.
  • Boots’s owner Sycamore Partners is continuing to weigh options, including a possible London initial public offering, as the company prepares under incoming CEO Alex Baldock.
  • Boots has reported recent improvement in performance, with roughly £7.5bn in revenue and a 25% rise in pre-tax profit to £337m, factors that will shape investor appetite for a float or sale.
  • Sigma’s exit and the market reaction — Sigma shares jumped about 6% — sharpen the wider stakes for the London market and leave investors watching whether the Westons will bid or Sycamore will pursue a high-profile UK listing.